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Superlevy Fine

Dáil Éireann Debate, Wednesday - 15 April 2015

Wednesday, 15 April 2015

Questions (279)

Tom Fleming

Question:

279. Deputy Tom Fleming asked the Minister for Agriculture, Food and the Marine if he will, in conjunction with the European Commission, minimise the financial impact on dairy farmers who are burdened with superlevy charges; and if he will make a statement on the matter. [14440/15]

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Written answers

The milk quota regime ended on March 31st. The abolition of milk quota presents a massive opportunity for the Irish dairy sector and one which we should look forward to with confidence. The fact that producers will face a super-levy bill in relation to the final year of the system is obviously unwelcome. However, the rules governing the imposition of a superlevy were set by binding regulations agreed at EU level and despite numerous proposals from Ireland and other like minded countries for action at EU level to mitigate the impact of the super levy, primarily via utilisation of an adjustment to the butterfat coefficient, it became clear as 2014 progressed and 2015 arrived that there was no realistic prospect of any movement on the super-levy. It was not possible for me on a unilateral basis to adjust these super levy rules.

In spite of this, I believe we have the right balance of measures in place to ensure that Irish dairy farmers can enter the new era with full confidence. With respect to the impending super levy, flexibility has been secured from the European Commission for farmers to pay the superlevy fine on a phased basis over 3 years. My Department is working on the details of a scheme to give effect to this flexibility at national level.

This announcement will serve as a major boost to dairy farmers in helping to ease the cashflow burden of paying the superlevy bill.

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